Private label brands, also known as store brands, are changing the snack industry. Retailers manufacture these products and sell them under their own brand’s label, like Walmart’s Great Value or Costco’s Kirkland Signature. National brands, also called name brands, are products produced and marketed by large manufacturers under their own brand names, like Kellogg’s or Coca-Cola.
The 2024 Snack50 report reveals a surprising shift in consumer preferences. Six of the top ten snack brands are now store brands. This is a big change from previous years when national brands dominated the list.
But it’s not price alone driving this trend. Consumers are exploring new options and are interested in innovative flavors and packaging. Private label brands like Amazon’s Aplenty and Target’s Favorite Day offer unique products that rival national brands in quality and appeal.
The report shows that while interest in store brands is high, many haven’t yet become routine purchases. This is both a challenge and an opportunity for national brands. They must innovate to maintain relevance and defend their market share.
Understanding consumer psychology is an important part of making sense of these trends. The report identifies four main drivers of snack choices: function, experience, conformity, and impulse. Impulse buying has become particularly important in recent years. Brands that focus on these emotional drivers are more likely to succeed, regardless of price point.
Even though private label brands currently dominate, all is not lost for national brands. Brands can get ahead by investing in innovation and the emotional connection to their customers.
